The horrible phrase used by people like me is a “multi-stakeholder model” of governance in which those with an interest in the flourishing of the institution, like workers and users, are organised and sit on the board. They have the expertise and experience to hold unaccountable elites to account. A third of the seats on the Co-op board should have gone to users and workers so the institution could not be captured by the self-interest of its managers, who pay themselves and develop strategy in their own interest. This is a model that could be usefully adopted throughout our policy and economy: a third of seats for funders, a third for workers and a third for managers to negotiate a balance of interests. It works well in Germany in public and private sectors. Such a “partnership” model could restore trust and integrity, as well as give incentives to participation and responsibility.
Super. So we’re going to put more non-bankers on the board of a bank and hope that this results in better banking, are we?